SYDNEY — March 11, 2026 : Australian defense technology company DroneShield has established a new manufacturing capability within the European Union dedicated to producing counter-uncrewed aerial systems (C-UAS). The facility represents the company’s first production line located outside Australia and marks a significant expansion of its global manufacturing footprint.
The new manufacturing initiative is aimed at supporting growing European demand for counter-drone technologies as regional governments increase investment in air defense and security systems. The production line will focus on assembling and delivering DroneShield’s counter-UAS equipment for military, law-enforcement, and critical infrastructure customers across Europe.
European Production Operations
DroneShield’s European manufacturing effort is being implemented through collaboration with an experienced regional contract manufacturer. Under the agreement, the partner organization is responsible for complete turnkey production of the systems.
Manufacturing activities at the facility include several stages of system development and integration. These processes involve printed circuit board (PCB) assembly, precision machining of mechanical components, cable and wire harness assembly, and final system integration. Completed systems will also undergo comprehensive testing and validation before delivery to customers.
According to the company, production of the European-assembled counter-drone systems has already begun. The first locally manufactured units are expected to be delivered to customers beginning in mid-2026.
To support the production line, DroneShield is also developing a supply chain primarily composed of European Union-based suppliers. The localized sourcing strategy is intended to strengthen supply chain resilience, reduce logistical delays, and ensure continuity of deliveries for regional customers.
Response to European Defense Procurement Trends
DroneShield stated that the establishment of an EU manufacturing presence reflects shifting procurement priorities across Europe. Governments across the region have increased defense spending and are emphasizing domestic or regional production capabilities for critical defense technologies.
The company specifically cited the influence of the ReArm Europe Plan and the Readiness 2030 initiative, which are designed to strengthen European defense preparedness and industrial capacity. These initiatives promote sovereign defense capabilities, regional industrial participation, and scalable local manufacturing.
By establishing a production presence inside the European Union, DroneShield aims to position itself more competitively in defense procurement programs that increasingly require regional industrial participation and secure supply chains.
DroneShield Chief Executive Officer Oleg Vornik said the company’s decision reflects the evolving security environment across Europe and the growing focus on counter-drone preparedness.
He stated that establishing manufacturing capabilities within the EU allows DroneShield to support European sovereign capability requirements while maintaining reliable delivery timelines for customers. The company expects the facility to support both new system deliveries and future sustainment requirements for European users.
Expansion of Global Manufacturing Capacity
The European production line forms part of DroneShield’s broader plan to significantly expand its manufacturing output to meet rising global demand for counter-drone systems.
According to the company, total annual production capacity across its global operations is projected to increase substantially over the next two years. DroneShield estimates that its combined production capability will grow from approximately $500 million in 2025 to around $2.4 billion by the end of 2026.
The expansion reflects accelerating demand for technologies designed to detect, track, and defeat small unmanned aircraft systems. Military forces, law enforcement agencies, and operators of critical infrastructure have increasingly sought counter-UAS solutions to address the threat posed by inexpensive commercial drones and improvised unmanned platforms.
Growing European Market Presence
DroneShield’s decision to establish manufacturing within the European Union follows a period of operational growth in the region. In 2025, the company secured a $61.6 million contract with a European military customer, representing its largest defense order in the European market to date.
The new EU production capability is expected to support fulfillment of existing contracts while positioning the company for additional procurement opportunities as European governments continue to expand counter-drone defenses.
DroneShield indicated that localized manufacturing will also support long-term maintenance, upgrades, and logistical support for its expanding European customer base. The facility is expected to serve as a key element in the company’s strategy to strengthen regional industrial partnerships while meeting the growing demand for counter-UAS technologies.
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